There has been a lot of craziness in the stock market lately, but people who have invested their money in the markets could have made a lot of money in recent years. Students use yearly percent increase data to decide which stock: Apple, Netflix or Chipotle, they should have invested in, way back in 2007.
- What was the net gain of these stocks?
- How do you figure that?
- Does the arithmetic or geometric average of those increases equal their total gain or loss over the years?
Middle school students can access this activity by finding percent increases & decreases. Students can either approximate an annual growth rate or find an exact growth rate by finding the geometric mean of the growth rates. Older students can apply nth roots and write exponential functions to model investment growth over time.
The Activity: Let’sGetRich.pdf
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